Student Loans in Maine
Maine's FAME administers both state grants and the Maine Loan — a state-backed supplemental loan program for Maine students after federal aid is exhausted. Maine also has the Student Loan Repayment Tax Credit, which provides a state income tax credit to Maine residents repaying qualifying student loans. The University of Maine system offers competitive in-state tuition.
Maine at a glance
Population
1.4M
U.S. Census Bureau, July 1, 2025 estimate
Editorial note — Maine
Maine's Student Loan Repayment Tax Credit is a unique benefit — Maine residents repaying qualifying student loans while living and working in Maine can claim a state income tax credit. See famemaine.com for current eligibility and the Legislature's FAQ.
Maine state student aid authority
The state higher-ed authority, state grants and scholarships, and federal-first guidance for Maine students.
Primary regulator
Finance Authority of Maine (FAME)
Administers Maine state student loan programs, grants, and the Maine State Grant. Also offers Maine Loan — a state-backed supplemental loan for Maine students.
State aid authority website ↗State aid authority scope
Administers Maine state student loan programs, grants, and the Maine State Grant. Also offers Maine Loan — a state-backed supplemental loan for Maine students.
Federal-first: Federal student aid (studentaid.gov) is the authoritative source for Pell Grants, federal subsidized and unsubsidized loans, PLUS loans, income-driven repayment, and loan forgiveness programs (PSLF, Teacher Loan Forgiveness). Exhaust all federal options before private loans. studentaid.gov
What to know before taking private student loans in Maine
Private student loans should only be used after exhausting federal loans and state grants. These are the factors that determine total cost.
Federal loans first
Always apply for federal student loans at studentaid.gov before private. Federal loans offer income-driven repayment, deferment, forbearance, and forgiveness options (PSLF, Teacher Loan Forgiveness) that private loans never match.
State grants and scholarships
Finance Authority of Maine (FAME) administers state-specific grants and scholarships. These are free money — exhaust them before any borrowing.
APR (variable vs. fixed)
Private student loan APRs can be fixed or variable. Variable rates may start lower but carry risk if rates rise during repayment. Fixed rates provide payment predictability across a 5–20 year term.
Cosigner requirement and release
Most private student loans require a creditworthy cosigner for undergraduate borrowers. Verify whether the lender offers cosigner release after a specified payment period — this matters for your cosigner's credit.
Deferment and forbearance options
Private lenders vary widely on in-school deferment, grace periods, and hardship forbearance. Federal loans provide much stronger protections — model your post-graduation income before choosing a private repayment term.
Total cost, not just monthly payment
A 20-year private loan term reduces monthly payments but substantially increases total interest paid. Compare total repayment cost across term options — a 10-year term typically costs far less overall.
Compare private student loan picks for Maine students
Ranked by APR, cosigner release policy, and repayment flexibility. Federal loans first — always.
Student loans in Maine — common questions
What state student aid is available in Maine? +
The Maine State Grant (need-based) and the Maine Loan (state-backed supplemental) are FAME's primary products. Visit famemaine.com for current programs and eligibility.
What is Maine's Student Loan Repayment Tax Credit? +
Maine residents repaying qualifying student loans while living and working in Maine may claim a state income tax credit. See famemaine.com for current eligibility rules.
Should I take federal or private student loans in Maine? +
Exhaust federal loans and FAME programs before any private loan. Federal loans offer income-driven repayment and forgiveness. Apply at studentaid.gov first.
Does Maine have a student loan forgiveness program? +
Maine offers a Student Loan Repayment Tax Credit for qualified Maine residents and workers. Maine public employees and teachers may also qualify for federal PSLF — see studentaid.gov.
How do I compare private student loans in Maine? +
After exhausting federal, FAME state grants, and the Maine Loan, compare private lenders on APR, repayment, and cosigner release.
Need a private student loan in Maine?
After exhausting federal loans and state grants, we rank private student loan lenders against our published methodology by APR, cosigner release, and repayment flexibility. Federal-first is non-negotiable — private loans forfeit income-driven repayment and PSLF eligibility.
Compare private student loan options →ClearValue Lending is an independent editorial platform. Some links are affiliate links — see disclosure below. Rankings are based on editorial criteria, not compensation. This page is not financial aid advice. Always exhaust federal student aid options at studentaid.gov before private loans.
Sources
- Finance Authority of Maine (FAME) — Official Website ↗
- Federal Student Aid (studentaid.gov) ↗ — federal loan programs, Pell Grants, income-driven repayment, and forgiveness programs
- U.S. Census Bureau ↗ — July 1, 2025 population estimates
Editorial disclaimer: This page provides general educational information about student loans and state financial aid in Maine. It is not financial aid advice. State aid program details were accurate as of May 22, 2026. Verify current state aid program terms directly with Finance Authority of Maine (FAME) and federal aid options at studentaid.gov before borrowing. Scored against ClearValue's published methodology. Updated May 2026.
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